Assignment

The assignment of rights (cession) is called an agreement in which one party (lender) transfers to another party (the new creditor) the right to claim fulfillment of obligations by a third party (the debtor), under conditions not deteriorating the situation of the debtor.

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The assignment of the claim is one of the grounds for creditor replacement in obligation ( article 512 of the civil code). This transaction (contract), under which the old lender transfers its rights to the new lender and the new lender accepts these rights and (1) shall or (2) is not obligated to pay for them. The Treaty of cession also in the practice of business turnover is called "the assignment agreement", and his subjects — respectively, the "assignors" (old creditor) and "assignee" (the new lender).

(1). The Treaty of cession can be compensated, if it provides for the obligation of new lender to the old lender provide any property is obtained all the right requirements. In this case, the relationship of the assignment subject to the provisions on the contract of sale ( article 656 of the civil code).

(2). If a contract of cession is free, i.e. the right at the obligation passes to the new lender without any consideration, such relations are governed by the rules relating to the donation ( article 717 of the civil code).

In fact,

the assignment of the claim is a transaction that only transfers the right to claim from the original creditor to the new creditor

The law clearly defines the rights and obligations of each party to such agreements:

• Old lender loses its right of claim against the debtor;
• New lender receives all the rights of the old creditor in that volume and on those conditions which were in force at the time of the transfer of rights;
• The assignment of rights does not require the consent of the debtor, but leaves him the right to suspend performance of its obligations until then, until he receives confirmation of the legality of the contract assignment.

Law firm AGTL provides services on drawing up the contract of assignment of rights requirements, and also offers legal assistance in arbitration disputes concerning contracts of assignment.

The assignment of rights under the contract has a number of features that need to be considered, namely:

Assignment relates to property rights, i.e. is a separate value, inseparable from the personalities of the owner. Therefore, the requirements related to the identity of the creditor and the debtor, may not be transferred to a third party. This excludes, for example, transfer to another creditor a right to maintenance, which was awarded in favor of a particular person.

The assignment of rights under the contract shall be made on a reimbursable basis, otherwise such an agreement may be considered by the court as the deed of gift, the conclusion of which between commercial organizations is not allowed. As a result, the transaction will be declared null and void and the new creditor will lose the right to sue.

The responsibility for the validity of the transferred rights requirements rests on the old lender, and in the case of recognition of such a right is invalid, he shall reimburse all the losses new. In practice often there are cases when the old lender is wrong about their legality their claims against the debtor or – in the case of bad faith – concludes the Treaty of cession with several new creditors. Only a thorough analysis of the transaction prior to its conclusion will allow the new lender to insure themselves against losses.

Also often used such a thing as "security cession". In this case the old lender transfers to the new creditor the right to claim against the debtor at the time as security of own liabilities. The main difference between a security cession from the usual is that rights are not always and only for the time required by the old lender to perform its own obligations, after which they will return.

Drafting and execution of contracts of assignment of rights requirements associated with a thorough knowledge of the current legislation. Improperly written contract can cause significant financial damage.